Our Money All Adds Up!

It’s Just Money. You can’t take it with you. Every day we hear all kinds of proverbs and anecdotes about money. As we grow older, we come to learn that they are all true. I think that we should save what we need to but, just like spending, we also shouldn’t save excessively. There is no point in working and saving our money if we don’t enjoy it.

Saving for our retirement or saving for a down payment is a progressive goal. This means that it will not happen overnight. Sometimes we may think that we shouldn’t save unless we save in large lump sums of money. This is not true. When we save every little bit counts, and eventually it all adds up. Saving as little as $100 per month can add up to $1200 per year. It may not seem like a lot now, but it will all add up to a lot later.

Unfortunately, the exact same rule is true for our spending just as it is for our savings. It may not seem like we are spending a lot of money day to day, but eventually it all adds up. Have you ever left for work in the morning with $40 in your wallet, and come home from work that evening with nothing but change? I am the type of person who spends money without even knowing it. If I keep money in my wallet I spend a little bit here and a little bit there. Before I know it, I have spent $40 in 15 minutes.

Where does our money go?

As 2010 is officially over, it is now time for me to add up all of my spending and expenses from the previous year in preparation of filing my annual income tax. I don’t think twice about spending money throughout the year because it doesn’t seem like I am spending that much money. However, when I add up all of my expenses at the end of the year it always gives me a reality check on just how quickly my daily spending adds up.

Here are some of my annual expenses:

Restaurants and Eating Out: $4668.71. YIKES! This is almost $100 a week on eating out at restaurants, ordering delivery, and picking up takeout food.

Cell Phone: $1048.85. I hate my cell phone. I am supposed to be paying around $40 per month. As you can see, my monthly cell phone bill has never been $40.

Medical Bills: $1483.97. These are my out of pocket expenses. Don’t forget that I live in Canada. I have both public and private health care. It still doesn’t cover 100% of my medical expenses which include glasses and contact lenses, a yearly physical, monthly prescriptions for sleeping pills and birth control (I will always be a DINK), as well as my annual physical and blood tests, along with monthly visits to my chiropractor.

Transportation including parking and gas: $1216.90. I wish that I could write off my parking tickets. This amount does not include all of my parking tickets and my 2 traffic violation tickets that I got in 2010.

About DINKs Finance

DINKS (Dual Income No Kids) Finance is a blog discussing personal finance for couples. While by no means financial experts, we own a variety of assets including real estate and stocks. We've been up to our eyeballs in debt and have made tons of financial mistakes. However, we've successfully retired that debt and we both do learn from our failings. We hope that our voice in this blog can help others in achieving their goals!

Disclaimer

Disclaimer: Kristina, James, Miel and guest posters are not financial professionals. Information provided is for informational and entertainment purposes only and does not constitute financial advice. This website is intended to provide general information and does not attempt to give you advice that relates to your specific situation. If you really need financial advice, you should discuss your specific issues with an independent financial adviser.

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